MATCO TOOLS Franchise Complaints
MATCO TOOLS Franchise Complaints: Have you had any dealings with MATCO Tools or the MATCO Tools franchise? Please share a comment about your experience – good or bad – below, as well as advice for those considering investing in a MATCO Tools franchise.
Also read: FRANCHISE LAWSUIT Alleges Matco Tools Scam, TD Bank Fraud
We received the following franchise warning about the MATCO TOOLS franchise opportunity. According to commenter “TOMMY CHEUNG” :
“STAY AWAY FROM MATCO TOOLS. THEY WILL SELL YOU A BILL OF GOODS,WHICH IS NO GOOD.
“RUMOR HAS IT ,MATCO MAKES MORE MONEY SIGNING NEW FRANCHISES THAN THEY DO TAKING CARE OF THEIR CURRENT ONES.
“DARYL PRITCHETT AND MIKE RAMEY WORK TOGETHER TO SIGN YOU UP AND THEN KICK YOU TO THE CURB. I AM WORKING ON A LAWSUIT AGAINST MATCO, HOPING TO TURN IT INTO A CLASS ACTION SUIT. YOU MAY CONTACT JERRY MARKS AT MARKS AND KLEIN LAW FIRM AT [redacted], IF YOU ARE INTERESTED.
“I INVESTED ALOT OF MONEY IN MATCO AND AFTER 3.5 YEARS THEY SHUT ME DOWN. WHEN THE ECONOMY SLOWED IN 2008,THEY PUT ME OUT OF BUSINESS.
“I ALSO SPOKE TO A PREVIOUS EXECUTIVE, WHO CALLED ME, AND STATED THATS THE WAY MATCO DOES BUSINESS. STAY AWAY FROM MATCO TOOLS AND RUN LIKE HELL WHEN YOU SEE THEM. I REPEAT DO NOT BUY OR INVEST IN MATCO TOOLS…”
Marks & Klein is a legitimate franchise law firm that often represents franchisees in lawsuits against their franchisors, but we haven’t verified with them whether a lawsuit against Matco Tools is in the works or not.
WHAT DO YOU THINK? IS MATCO TOOLS A GOOD FRANCHISE OPPORTUNITY, A FAIR FRANCHISE OPPORTUNITY OR A FRANCHISE SCAM?
If you’ve had dealings with Matco Tools, please share a comment below.
Matco Tools Franchise Posts & Discussions
MATCO TOOLS Franchise Complaints June 8, 2011 (1000+
comments)
MATCO TOOLS Franchise Defenders Speak Out December 7,
2011 (Comments defending Matco invited)
MATCO TOOLS Distributor Franchise December 7, 2011 (Overview with
links)
MATCO TOOLS Franchise Report Alleges Distributor Churning November 29,
2011
MATCO TOOLS 2011 Franchise Disclosure Document (FDD) & Other
Resources November 22, 2011
MATCO TOOLS Class Action Lawsuit, “Secret” Sales Projections November
22, 2011
FRANCHISE LAWSUIT Alleges Matco Tools Scam, TD Bank Fraud November 15,
2011
Failure Rates of the 10 Most Popular Franchises April 26, 2010
Other Mobile Tool Franchise Posts:
MAC TOOLS Guilty of Franchise Fraud? November 7, 2011
CORNWELL TOOLS Franchise Scam or No Scam? November 17, 2011
Admin…………We are giving the list of calls before signing but they include EVERYONE at the shop, even the janitor. The LOC at a particular shop is just a number. Say it is 8, that could include detail guys, parts counter, and even secretaries.
I have sold Oakleys to secretaries and sales people before but I would hardly consider them techs that buy tools. Speaking of selling to sales personnel, that is a very slippery slope. They are the least reliable payers out there. You pull up with your Duramax and WHAM ! They are out on a 45 minute test drive.
Debbie & Todd brought up a very important topic……….we roll into shops and the veteran techs have every tool they need, and the new young techs need tools they can’t afford. So they walk on into the store wanting $2000 in tools expecting to pay $20 a week. We explain to them that is NOT how it works.
You have to walk a VERY FINE line and try to be a very good judge of character, and a credit bureau, all in the blink of an eye. You need the TP accounts so you sell the kid $400-$500 of tools and come to an agreement of $40 a week. Ten week turn is stretching it but you need the business.
A couple of weeks go by, the first week he has his $40 payment, the second week his child was ill so he only has $15. You try to explain you understand but he will have to make it up the following week. He agrees, then next week he isn’t at work. You roll into the shop the next time and told he was fired, sorry about your luck.
Admin.
I signed my Security Agreement, my LOC, my Distributor Lease Agreement, MDBS Software Agreement, Blanket Certificate of Exemption,Uniform Franchise Offering Circular and my Distributorship Agreement on the same day. 6/11/04
No!
Admin, YES my DM another dbr and myself went over the list of calls before i signed my docs to make sure it was a viable route for me.
My DM surveyed and signed my route list on 5/28/04. My customers were not a viable 325 either. My DM told me he had a hard time finding shops to call on as well. In my first week with my trainer I lost 5 customers in one shop that had told me and my trainer he told my DM he wanted no Matco trucks on his property do to prior Distributor for Matco. I went from 333 to 328 my first week. YES! there were Non viable customers in shops that Matco gave me out of 328 left that were not Matco credit worthy. FULL TIME MECHANICS. Also some shops had inflated head count.
Before I went to training I had a talk to my DM about Head Count because I felt there wasn’t much there on my LOC and he told me not to worry. Matco usually gives Distributors the minimum head count and it is up to distributor to work his route and add more shops. I asked him ho he told me once I started showing up regularly. Guys would be flagging me down. THEY did.
Problem I have with tool companies is new dealer should be surveying route with dm. I think it’s bogus you have to rely on someone else putting together your lively hood. It never ends up being a great survey and new dealer loses.
Todd,
Had the same situation as you except my DM was riding with me at the time.. A four customer shop though. The owner told me he didnt want any tool guys to stop by because of a previous snappy dealer bent them over pretty hard (not new news around here). So anyhow I slowly worked my way in over time and gained their trust. Now I’m the only dealer allowed on the property and doing quite well there.
Humm see where the difference is between the different sides here??
You get told no and walk away, I get told no and make it a challenge to prove them wrong..
Are you paying attention guest17 I’ll repeat it again in case I wasn’t clear before.
It was my FIRST week as a Matco Distributor. My Regional Trainer from Matco is riding with me going to my shops the first day. I knew this guy because I used to turn wrenches for RSC and he was the Manager of Scott Equipment (Case Dealer) We had even worked together and were friends. We knew each other by name. I thought I could fix this because we were friends but the Regional Trainer said no way. Tracy even told me he was SORRY and not to take it personal but the previous Matco distributor had sold a bunch of tools in the shop and quit and they could not get their stuffreplaced and he didn’t want a Matco truck their at all. He said he had told my DM that.
Now your advice is to persue a shop where you already know the guy and he tells you he don’t want and never wanted service.
This sounds like the advice I got when I tried to do my first repo for Matco and ended up losing over $1400 in truck accounts. Which Matco told me that’s not our problem.
In Fact I think it’s called “criminal tresspass” when you go on someone elses poperty after they have told you to stay off!
Does anyone on hear think they should believe a word this guest17 says with advice like that?
Todd,
Guest17 says
“So anyhow I slowly worked my way in over time and gained their trust. Now I’m the only dealer allowed on the property and doing quite well ”
How is that criminal tresspass, didint recall in his post that the shop owner said ” stay off my property”….read it yourself its right up there.
Failed distributor says “Does anyone on hear think they should believe a word this guest17 says with advice like that?”
Very Successfull distributor says “You get told no and walk away, I get told no and make it a challenge to prove them wrong..”
Sounds like persistance breeds success. And failures breed….I’ll let you finish that one.
Listen and read again Todd a Peterson, this WAS my first week in business!! You’re turning into Tommy. You FAILED and I have not!! Some day when you get your head out of Tommys brown eye you can realize that this is what makes YOU different than me, different than Cary, different than Matco#1, different than Jay, and different than Junior.. We make this business what we can. People like you and the rest of the WMD are just victims in your own minds and will always will be..
So take your advise where you will. But getting it from failed dbrs and this site is not a good Indication of what a Matco tools franchise can offer you..
Happy new years!!
HAPPY NEW YEAR!!!!!!!!!!!!!!!!!!!!!!!!!
Happy New Year, everyone.
FYI Matco Tools topped the December, 2011 UNHAPPY FRANCHISEE 25 ranking both in terms of readership and comments.
Congratulations, and thanks for commenting.
See December’s rankings here:
UNHAPPY FRANCHISEE 25 – December 2011
Cary and guest17 evidently can’t read!!!
Guest 17 stated “snappy dealer bent them over pretty hard (not new news around here).”
I stated “Tracy even told me he was SORRY and not to take it personal but the previous Matco distributor had sold a bunch of tools in the shop and quit and they could not get their stuffreplaced and he didn’t want a Matco truck their at all.”
See the difference!!! Snappy Matco
Now keep posting your intellectually challenged comments with no base of fruitful knowledge of facts. I will have to defend my comments because you will continually ATTACK them.
I have no idea what TOMMY’S situation is with Matco but the more you attack me and others after reading our posts especially mine listing dates, times, fraud, lies, and false documents leading to false termination, the more credible my story becomes to readers.
Comments like the Brown Eye comment just show how intellegent you are as a person. You know, your true character as a human being.
Reader’s notice How guest17 answered “YES” to ADMIN’s question.
Now notice how there is no factual data to back up his claim.
I would like for everyone to post and answer ADMIN’s Question but with factual information like I have. I never KNEW what my LOC was and it was not even constructed until 5/28/04.
This is because the previous distributor had a NON-Viable route with less than 325 customers(He only ran three days a week). My DM had to go out and try to find viable customers to put on my route but the area had not had Distributors in years so it was difficult to do. DM not being from this area and growing up in Georgia has know idea what shops are out there at this time until some distributor goes in business and people start calling that distributor because of seeing the truck and a phone number on the side of it. Just as my DM had forseen and told me it would happen and as he had promised he let me call on some shops, told me not to call on others, and asked me to help prep some shops so he could start up a distributor in a route that had no service for over 8 years.
I was a team player. The shops I had added to my route were approved by my DM. My words are credible because they are truthful.
Started & faxed my papers today for the suit.
I was with Matco for over 8 years and forced out due to low purchase average.After losing 15 – 20 shops in my territory I could not keep up with the economic downturn. After asking multiple times for an expansion to my route since the one next to me was vacant…I was shot down. My customer count (True) was in the area of 200-225. The new distributor now has both routes….
I had to call on vacant areas 20 miles way to keep my TP going.
My first 5 years were the best but when I started losing shops and asked for help I was thrown to the curb.
Now after losing over $150 k,Im determined to follow through with this lawsuit.
Matco has many fraudulent ways of doing business with all the risk on the Distributor. I plan on opening this can of worms….
Matco has not heard the last of me.
Former WI Distributor:
Welcome and thanks for your comment.
I have added it to the Mobile Tool Franchise Guide page on List of Calls issues:
http://www.unhappyfranchisee.com/mobile-tool-franchise-loc/
Todd posting things such as dates doesn’t mean its a fact. I can give you dates too. But I doubt readers of this really care about the exact day Todd signed his docs or the day I signed mine. It ok that you can’t pick out the similarities in all this, as Cary said before;
Sounds like persistance breeds success. And failures breed….I’ll let you finish that one
Good luck with the lawsuit, and remember Todd never let yourself be a victim
I understand you Former that seems to be the Matco way. But, what I don’t understand is now they will hire a new distributor give him MORE shops than you to call on and you will be called a failure by the OBC and Matco.
I’ll say it again, when Tim Novak forced me to vacate shops I had established with my DM whom he fired, I was forced twice to surrender customers within 2 months. I signed one route list (Which Matco has no record of ) which would have given Mike Johnson 350 customers to call on but Rick Pena had a mistake repeating one shop twice and would have given him realistically 338 which was still 10 more than I started my franchise with. I would have been left with over 450 customers but lost $34,398.40 in TP and $116,706.50 in PSA contracts.
BUT, I was forced to give up more customers when Rick Pena came back a second time stating I had given hem “JUNK SHOPS” and that “MIKE DESERVES THE SAME CHANCE I HAD TO SUCCEED AS A DISTRIBUTOR.” I told Rick about how I started and told him if I was reduced to what I had before there was no way I could be a successful Distributor. He told me I was better than that and I could build it up again.
Happy New Year Everyone!!
My husband and I were out yesterday looking for a good truck wash and decided to make a quick video.
I know the WIND really distorts the sound quality, so we will make another – but,
this was kind of fun………….
http://www.youtube.com/watch?v=sReB6AXug-c
enjoy
Oh, just to ADD to the tally………..
ANOTHER distributor contacted me today, they were with Matco for EIGHT years before being kicked to the curb…………………
Same story as ALL the rest!!!!!!!!!!!!!!!
They have found legal assistance and are VERY grateful to THIS SITE!
Not everyone will post their story
Not everyone will post their name
Not everyone will post – period
BUT THEY **DO** READ!!!!!!!!
The word is spreading, the information is out!!!!!!!!!!!!!
Where is matco1 or jason tonite, what part of Washington are you in,I will be up that way soon,maybe we can have coffee together and talk about matco.
Thanks for posting and telling everyone how matco has screwed you, new guys, keep posting and be loud and we will be heard.
New guys, ignore the defenders, that try to disrupt this conversation, no matter what they say,just ignore them, what they say is meaningless and has no point to it.
We know why we are here, tell everyone, including snapon,mac, friends and former distributors, technicians, shop owners and more.
Pingback: MATCO TOOLS: Lady Matco Speaks Out (Video) : Unhappy Franchisee
Debbie:
Your video is also posted here:
MATCO TOOLS: Lady Matco Speaks Out (Video)
The url is http://www.unhappyfranchisee.com/matco-tools-lady-matco/
http://www.unhappyfranchisee.com/unhappy-franchisee-25-december-2011/
Matco IS number one
FOR COMPLAINTS!!!!!!!!!!!!
Todd, I don’t understand. If matco asked you too give up stops for a new dealer why didn’t you call a lawyer then? I think its wrong what happened to you. People should not criticize anyone on here that failed becaus every situation has it’s own situation. I believe some people fail because they are lazy and a lot more people fail with lack of support. A good dm versus a bad one plays a huge roll too. I do however think the company that put you in business always carrys an upper hand over the dealers. I say that because they have the power to put you in business and can take you out. I been a tool man for some time now. When I talk to old timers that been in 25 years or more they all tell me the same thing. The company lost touch with what we are doing out here. It’s all about numbers and that’s it. I spent over $500k in merchandise with my company and I didn’t even get a Christmas card. Yet my customers that spent $2k or more this year got a free $100 jacket that cost me $50. I think these tool companies got too comfortable letting other people like ourselves do all the hard work and they just collect money. It’s like fixing those stupid ratchets. All that time spent fixing those things and not getting paid for our time. Or fixing tool box slides. I bet if the wheels were turned and it was there trucks out there they would see how much hard work it takes to run a truck.
Finally a guy who reads posts and makes use of common sense.
If you read my Biography (LOL!) the reason I didn’t get an attorney was because Tim Novak had me by the balls. l had just went from a 18′ Freightliner to a 26′ Peterbilt within the last 8 months because I was doing what I thought Matco wanted growing my franchise just like Bud Cook did his. You see Bud Cook gave me my Distributor ride when I started and I thought that is why Matco had me ride with him because he was what Matco wanted me to become.
I had to buy the bigger truck to carry the $240,000+ I had in inventory my cost when I was asked to give up all those customers. Truth of the matter is I had just been back from Expo less then 4 mo. and was still paying for the $20,000+ in tools I had bought. I didn’t want to lose my franchise because I liked being my own boss. That was when I thought I was my own boss.
After Tim and since that happened I realize now that Matco is the boss. In fact there is hardly no difference between an Employee and a Matco Franchise. Matco monitors when I clock in on MDBS, when I clock off MDBS, Which shops I am calling on through MDBS, how often I call on them through MDBS, which shops I call on that are not on my LOC through MDBS, how much money I have in those shops through MDBS, where those shops are at through MDBS.
Matco gives you a LOC that you have no say so in.
When you don’t have enough customers to call on is the only time they throw in your face that your a franchise owner read your contract.
i support todd 100%. thats the way it goes. we are led to believe that thats the way it should be untill the final moment when you get the axe and thats it. have a nice day, we have your ass naqd thank you
I was a Matco Tools Franchisee for over 6 1/2 yrs. At 6 yrs. July 12, 2010 I received a letter stating I was at 80% of the National average of Matco Tools Distributor’s. It stated I had 90 days to cure or I would be terminated and if I cured and repeated the same offense within a year I could be terminated. It said that the reason for termination was ‘Good Cause.’ I disagreed with that letter and thought I had won a battle with Matco when they released more customers for me to call on and allowed me to stay in business 6 plus months after that letter but on Feb. 11, 2011 I received a phone call from my Regional Manager and District Manager stating that I was being terminated for repeating the same offense. I fought to keep my franchise with management even driving all the way to Stow, OH where Matco Tools Headquarters are stating to them that I had been falsely terminated only to be given a letter which was already pre typed at a restaurant where we met because they did not want to meet me at headquarters. They offered to waive restocking fees if I signed that letter which I did not agree with.
After reading my franchise circular, documents, and reviewing other papers I realize that Matco enjoys putting people out of business rather than keeping them in. I see that they do keep a few selected distributors happy with a different franchise agreement which they do not offer new distributors. Distributors signing newer franchise agreements with Matco now get a Customer List or List Of Calls assigned to them which entitles them to a minimum of 325 customers. It could be more but in most instances it is the minimum. Older distributors who operate under a territory and make up the bulk of their corporate sales are not defined by head count but by an area. Thus, their number of potential customers can be astronomically larger driving their sales and Matco’s 80% of the National average through the roof.
According to Ark. Code 4-72-202 (7) (A) which Matco listed as the “Good Cause” for seperating my franchise it says “Failure by a franchisee to comply substantially with the requirements imposed upon him or her by the franchisor, or sought to be imposed by the franchisor, which requirements are not discriminatory as compared with the requirements imposed on other similarily situated franchisees, either by their terms or in the manner or their enforcement”
My arguments are:
1) Matco created my low purchase average by taking over 220plus customers from me in 2006 and never giving me any more customers when I went from 350 in Aug. of 2006 to 230 in July 2010 with a declining economy.
2) Matco discriminates with my type of franchise pooling me with distributors who have territories making me compete with their purchase averages.
3) Matco did not give me 10 days to cure a repeat violation of that same offense
4) Matco management frauded my franchise:
a) District Manager told me that I had cured and to forget the July 12, 2010 letter ever exhisted (around November 2010)
b) When called on Feb. 11, 2011 to receive termination from Regional Manager I asked him why and he stated then that I had cured but defaulted on my purchase average within a year.
c) When visited in June of 2006 the same Regional Manager who fired my District Manager forced me to vacate 220 plus established customers by threatening me to lose my franchise with Matco if I didn’t comply.
d) Vice President of Matco Tools states I never cured at 90 days but was still allowed to stay in business over 90 days after cure period. He said I was being terminated for first offense. Therefore not allowed a 10 day cure period for a second offense. This was stated to me only after I mentioned they had falsely terminated me not giving me 10 days to cure.
I am terribly distrought over this entire situation. I don’t know where to go or who to turn to. I am an American who is supposed to have rights and be protected by law but am having a hard time getting representation in Arkansas.
Todd A. Peterson
Former Matco Tools Franchisee
Todd email me at [redacted]
I will give you the phone numbers of who to talk to.
Wayne Schaefer
Former Matco Distributor
[We don’t allow posting of personal contact info in the comments. If any two commenters would like to exchange contact info, please email ADMIN at UnhappyFranchisee[at]gmail.com. Thanks! ADMIN]
Call marks&klein in red bank nj. Ask for Jerry marks.. He is representing many dealers right now.
Go back and review your list of calls, I did and found several shops that the d.m never signed off on and several that he just photocopied with dates going back to 2003.
How did he get a headcount, if he didn’t go by verify with the manager of the shop and why would the LOC sheets have dates going back to 2003? Could that be falsified documents?
New post specifically for Snap-on Franchise Complaints:
SNAP-ON TOOLS Franchise Complaints
http://www.unhappyfranchisee.com/snap-on-tools-franchise-complaints/.
Question?
How many people who started a Franchise with Matco got to survey their route before siging papers that would make you commit to selling to JUST TO THOSE CUSTOMERS for the rest of your Franchise career? I didn’t!
How many Distributors feel that Matco gave them a viable route their first week in as a Franchise Distributor? I didn’t!
How many Distributors were told they could add shops to their Route List? I was.
Before I went to Stow for training and when I returned to start my route.
How many Distributors thought that by communicating with a Matco Employee called a District Managir shops could be added to your route list. I did! I thought that he was our liaison to Matco.
How many Distributor’s would agree that they have no idea what a Drop/Add form is and would agree that if it was a Document that is important in the adjustment of your route that it should have been in your UFOC where all your other important forms are located? Didn’t have the form in my UFOC. District Manager never mentioned a form. District Manager never said I was calling on shops not approved by Matco.
How many Distributor’s received valuable training in Stow, OH. which would explain how to securely Drop/ Add shops to your route list? I received NO such training in Stow, Ohio where I spent two weeks and could have easily been taught this.
How many Distributor’s would have signed up to be franchisee’s if they were not under the impression that Matco would allow them to grow their business and make themselves and Matco profitable as it says in their franchise Contract? I would not have.
Had I not been terminated with Matco I would finally be making a profit after they watched me suffer for 3 years. The $1233 dollars I owed them on my franchise would have been paid for and I could start to dwindle my truck payment finally becoming debt to Matco free for start up costs.
You see my goal was to be debt free of start ups within four years and when Tim cut my route that went out the window.
Former
Look me up on Facebook I am the guy in a softball uniform from Arkansas standing on base in red/white. I also sent a request to your linked in account.
ADMIN on December 31st, 2011 2:22 pm Question: Does a prospective Matco franchisee get a copy of the actual List of Calls prior to signing the franchise agreement, or are they simply told they’ll have 325? Do they have the ability to research the actual customer list they’ll have prior to signing up?
Admin the anwer to your question is yes. The DM or the MDM do the survey. After the DM or MDM send all the required documents to MATCO the new distributor has as long as he/or she want to review the documents. This includes the route survey.
Everyone should take the survey sheets and at least drive the route. I did it both times I went back on the truck.
When the DM or MDM do the survey they are instructed to talk to the manager or shop owner and find out how many full time technicians work there that are required to purchase tools.
Just like in life there are no garantees, so there is no garantee these customers will buy from you, but you are garanteed a minimum of 325 technicians in your area.
Glad to see that you asked a question, been of the site for a while but I see Tommy is back to his same old tactics of criticizing people, I thought you asked everyone to stop doing that?
Not exactly….
Yes, you get your route list and your DM drives
you to each shop to introduce you
BUT that is complete BS that you can take your
time to review!
NO, you are sent off to Stow OH for training- you’ve
already signed away your life!
And you have the privilege of paying for hotel,
air fare, and meals for 10 days! In STOW Ohio
Tommmy Cheung writes on December 30th, 2011 10:56 am Snap-On gives you a loc of 225 .
they also have trainers, trained in areas of diagnostic, to go to shops to promote their equipment.
Glad we don’t have equipment guys to go into our shops and steal sales away from us. Glad MATCO doesn’t sell tools at Costco like Snap On does, Glad MATCO doesn’t charge a franchise fee like Snap On does! Glad MATCO doesnt have an empoyee driving around near my route selling tools cheaper than I can like the Snap On employee is doing in my area.
Glad I am with the #1 Tool Franchise…MATCO Tools.
While some were on here typing, sold another toolbox today, a cash deal to a shop owner, that was after the guys at the shop spent $1,600 on Friday. And no they don’t pay $25 a week they pay 50-80 depending on the guy. No to mention the $1,500 in other TP sales to the few shops that were open.
People can say all they want about the economy, but Technicians can afford the tools, most don’t want to be rude so if they don’t like the DBR they will just make an excuse, like we are too slow, or I can’t afford it, not making the hours….have seen this so many times. Most techs just dont want to hurt the feelings of the DBR
AND SEVERAL shop owners told the DM Matco could come
to the shop – THEN told ME when I started the route,
We really don’t buy tools and you really don’t need to come.
So, I worked those shops for a whole year!
Toting, promoting, smiling, and giving away hats and having
contests —— then, and ONLY then I requested those shops
Be taken OFF my LOC as they were NO REVENUE!
Not worth the cost of the deisel!
But, they were never taken off
And NO other shops were given to replace
According to USA Today just YESTERDAY
The economy is still struggling to recover from the Great Recession of 2007-2009. The housing market remains weak and a debt crisis in Europe threatens growth in 2012. The unemployment rate is at a recession-level 8.6 percent, up from 7.8 percent when Obama took office in January 2009. That month, the recession was already more than a year old.
Apparently, faltering Matco distributors live in
THIS world
Familiar Matco verbiage;
“Don’t worry about the economy! Techs have money for tools.
So they struggle to pay their rent, grocery, child support, phone bill,
they HAVE $25 – $50 a WEEK for YOU. Don’t worry
about the Economy! USA Today is just some silly little
rag anyway!”
A few things I learned with Technicians when doing surveys as a DM for eight years.
1. They are considerate, they are human beings.
A. If they don’t want to do business with a particular DBR they will make an excuse as to not get into an argument or hurt anyones feelings.
B. They like a full truck….so many times techs would say, “he was an ok guy but didn’t have tools on his truck, it was a waste of time to go out there, so I was usually busy when he came.
C. He was always complaining about the economy, or how someone ruined his day, I would hide when he showed up just so I wouldnt have to listen how bad everything was.
D. His truck stunk, or he had bad breath, or he had bad B.O.
I could add several more things to the list, but not necessary. I truly feel bad for people who are in this business and aren’t selling or collecting and blaming the economy. Chances are its not the economy….it’s YOU!
Let’s see…I am a technician, and my 1/2 impact just stopped working, I need a new one, I can’t afford the $400 for a new one, but I can afford, 30-40 a week or more. I just wish there was a place that would take payments….oh yeah there is!
So over the weekend, I mounted a 22″ LCD TV in my truck….why to increase my sales? Now I guess I could have watched the news and thought how am I going to increase my sales next year in this economy or I could actually do something to help it. I chose to add a second tv in my truck.
how is that Matcos fault that the shop told you , dont need to come? When starting any business it is the business owners responsibility to do due diligence to inspect and research all aspects of their business. Including, but not limited to area, economic environment, potential customers, expenses and options. The SBA research show over 50% of business fail in the first 5 years. The SBA states “Almost all businesses experience a loss when first beginning, and it is often several years before they can show a profit. New investors may not be willing to deal with these losses, and the business may not have enough capital to weather these first trial years.”
Read more: How Many New Businesses Fail in the First Year? | eHow.com http://www.ehow.com/how-does_5212542_many-businesses-fail-first-year_.html#ixzz1iMA0SNT5 During the first few years it is common for most business to loss money, many business are under capitalised, and owner do
Debbie, What do the other DBR’s in your district think about what is going on with you? Have you talked to your MDAC rep or other DBR’s? How are they doing?
Todd A. Peterson writes on January 2nd, 2012 2:37 pm Question?
How many people who started a Franchise with Matco got to survey their route before siging papers that would make you commit to selling to JUST TO THOSE CUSTOMERS for the rest of your Franchise career? I didn’t!
well Todd did you ask, I had several people ask me when I was a DM if they could come with me and I let them. So…Did you ask to go?
District Manager never said I was calling on shops not approved by Matco.
Well Todd where they on your list of calls, because if your read your contract it says you can only call on the shops on your list of calls.
So if you were going to shops NOT on your list of calls you were in violation of your agreement whether you agree or not.
Pro Golf 69.7% SBA fail rate, Athletes Foot 61.3%, Blimpie 45.7 to name a few. Weird was on Inc.com, on their list of best and worst franchise based on SBA fail rate, didn’t see MATCO on there.
Did find MATCO on best franchise.org. they listed the worst failure rate.
#1 was Tilden Brake car Center had a 85.71 failure rate…ouch, Pro Golf 63.64 fail rate, Lee Myles Transmission 50% fail rate, Dollar stores 44.4 %, just to name a few
Cornwell was #55 at 41.82 fail rate had been involved in 55 SBA Loans
Matco was #67 at 32.81 fail rate had 320 SBA loans
MAC was #74 at 30.95 fail rate had 42 SBA loans
Looking at these numbers, doesnt look too bad for MATCO, wonder what the percentage would be had Cornwell and MAC had more SBA Loans
matcoman, you are right on!
The SBA Reports that 49% of small businesses dont make it 5 years! 29% dont make it 2 years!
Matco’s failures are Matco’s making
Specific Matco business practices have CAUSED the failure of multiple businesses
Systematic fraud perpetrated on hard working, well intentioned, earnest business owners.
Including, but NOT limited to;
1. Inflated call lists
2. Uncompensated labor
3. Undisclosed Franchisee Fees” in the form of: 1) national purchase average requirement; and 2) payment for freight charges to return improperly shipped product;
4. Improper route layouts – excess “windshield time”; failure to comply with compact route requirement;
5. Manipulation of distributors’ customer base to create and add “new” customers – abuse of “open stops”;
6. PSA abuse; Illusory PSA promise of extended credit without considering the reality of undocumented (illegal) immigrant mechanics “Immployees”;
7. Improperly adding into 9% PSA fee, state sales tax;
8. PSA “health index” abuse – denial of credit based upon third party actions unrelated to customer and distributor;
9. Termination abuse; failure to give proper credit for tool returns and non-returnable merchandise;
10.. Use of deceptive advertising materials pitched to returning military veterans and other new prospects regarding supposed distributor success, given SBA documented 37.3% failure rate and Matco own Franchise Disclosure Document 49% failure statistics;
11. Coordinated campaign to force the termination of veteran (older) distributors out of business in order to re-sell the route to a new prospect because of financial “churning” advantage to Matco/Danaher;
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Habitual negativity is a problem because it can quickly become your trademark and overshadow any accomplishments. And in a tough job market, when workers are feeling stressed and employers consider trimming head count, you don’t want to be remembered for being the local sourpuss